JCDecaux Australia has unveiled new plans for an "audience-led future" for its large format portfolio, creating advanced data planning capabilities and standard 1-in-6 share of voice for digital advertisers.
The new approach for JCDecaux’s large format channel comprises eight industry leading initiatives that combine to drive greater effectiveness for brands using digital large format.
The first is a new large format pricing methodology, with the OOH provider overhauling its pricing with a rigorous assessment of ten key factors; from the physical attributes that enhance viewability, market demand, location, environmental context and most notably - the value and relevance of the audiences reached by each individual large format site.
The business will also bring greater relativity and significant rate card reductions across the portfolio, with a significant overall rate card reduction across its digital large format portfolio.
JCDecaux will also introduce a reduction of total large format digital contacts by 40%, with the intention of bringing greater accountability of audience reporting to the industry.
It is also reducing the number of advertisers displayed on each digital billboard from ten to six.
This is in line with JCDecaux's global best practice, with the change expected to increase viewability and deliver a 67% uplift in share-of-time for advertisers across its digital large format network.
“Since acquiring APN Outdoor we have been through a process of deep consultation with both agency partners and advertisers. As a result, we now have a firm grasp of the challenges and a clear roadmap to rebuild the large format model," JCDecaux ANZ CEO Steve O’Connor says.
“Perhaps the most salient learning has been that advertisers don’t feel their campaigns are visible with digital share-of-voice set at one in ten. The channel, for all its strengths, just isn’t effective at these ratios. One in six is the established global best practice.”
JCDecaux stated that the shift from panel to audience-led pricing is a" fundamental prerequisite" on the company's journey towards automation and an OOH programmatic future.
Advertisers who have already invested across JCDecaux digital large format from September onwards will automatically be entitled to the new share-of-voice commitment.
JCDecaux’s new pricing methodologies and other campaign changes will be implemented across its digital large format network from September, with the classic large format portfolio to follow in January next year.
“The large format narrative must step-change and that moment starts now," JCDecaux ANZ chief commercial officer Max Eburne says.
"Our new pricing methodology is intended to disrupt flawed discounting practices rife across the industry and bring large format trading parameters in parallel with standard media industry practices.
Further changes include:
- Meaningful media evaluation metrics. JCDecaux is changing the metrics for media evaluation, from asset-led, arbitrary pricing and artificial discounting, paving the way for more "progressive and relevant campaign metrics".
- JCDecaux has taken positive steps to address widespread digital measurement concerns from advertisers and agencies. The new digital large format pricing methodology takes into account a 40% decrease on total contacts as reported through MOVE.
- Category exclusivity now guaranteed across digital large format. Previously only available to JCDecaux’s street furniture advertisers.
- Platform-agnostic verification and complete transparency in digital reporting. With several measurement providers in the marketplace, including Seedooh, IAS and Veridooh, JCDecaux welcomes independent reporting of digital and classic campaigns with the highest degree of transparency and will work with advertisers to provide verification data in real-time.
- Next-generation large format data platform JCDecauxAGILE. A new large format visualisation and optimisation data ecosystem that will connect a wide variety of data sources in a single platform.
Most recently, JCDecaux revealed plans to take on other advertising sectors as it looks to drive further revenue following the completion of its merger with APN Outdoor.
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